Sensex and Nifty News: Markets Rally as US-Japan Deal Lifts Global Sentiment

Market Performance

The Indian stock market witnessed a solid uptrend on Wednesday, July 23, as benchmark indices posted strong gains.

• Sensex surged 539.83 points or 0.66% to close at 82,726.64.
• During intraday trade, it hit a high of 82,786.43, up nearly 600 points.
• Nifty 50 advanced 159 points or 0.63% to end at 25,219.90.
• It had touched an intraday high of 25,233.50, comfortably reclaiming the 25,200 mark.

Mid and small-cap indices followed suit:

• BSE Midcap Index rose by 0.24%.
• BSE Smallcap Index saw a marginal gain of 0.05%.

The overall market capitalisation of BSE-listed firms climbed to ₹460.35 lakh crore, up from ₹458.45 lakh crore—a rise of nearly ₹2 lakh crore in a single day.

Main News: What Drove the Rally in Indian Markets

The rally in Indian equities was driven by multiple favorable triggers:

1. US-Japan Trade Agreement Boosts Global Confidence

• A key catalyst was the announcement of a trade deal between the United States and Japan.
• As part of the agreement, a 15% tariff will apply to Japanese imports into the US.
• The deal triggered optimism that the US might soon resolve trade tensions with other economies, including India and China.

2. Positive Global Cues Fuel Buying

• Asian markets showed a bullish trend:
  • Japan’s Nikkei 225, South Korea’s Kospi, Shanghai Composite, and Hang Seng Index all traded in the green.
• US markets closed higher on Tuesday.
• The S&P 500 marked its 11th record high in 2025, reflecting a strong appetite for risk among global investors.

3. Firm Support from Q1 Corporate Earnings

• The rally also rode on better-than-expected Q1 earnings from top financial names.
• Key gainers included ICICI Bank, HDFC Bank, Bajaj Finance, and Reliance Industries.

4. Drop in Market Volatility

• India VIX, the volatility index, dropped by 2% to 10.54, indicating lower uncertainty.
• A falling VIX typically encourages broader market participation and buying interest.

Company Details: Top Gainers Driving Market Surge

Several heavyweights and sector leaders contributed to the rally:

• HDFC Bank and ICICI Bank remained major momentum drivers.
• Bajaj Finance, Tata Motors, Maruti Suzuki India, Shriram Finance, and Apollo Hospitals posted gains of up to 2%.

Summary of the Article

On July 23, Indian stock indices—Sensex and Nifty 50—closed significantly higher, tracking positive global cues and strong buying in banking and financial heavyweights. The US-Japan trade deal reignited global investor confidence, while robust corporate earnings added to domestic optimism. Lower volatility levels also supported bullish sentiment.

With Sensex jumping over 500 points and Nifty crossing the 25,200 mark, the day marked a broad-based rally across segments, boosting investor wealth by nearly ₹2 lakh crore.